Diversity Management in the Workforce & its Challenges

 

Globalization demands more interrelations and interactions between people from a variety of cultures, races, beliefs and backgrounds. No one country is isolated from the other and employees of an organization are expected to work with a diversity of workforce from different regions in the same country as well as different countries of the world. Diversity management (DM) is therefore referred to as “acknowledging, understanding, accepting, valuing and celebrating differences among people” (Mbaknol.com, 2021). Differences can emerge from age, class, gender, mental and physical capability, educational status etc. and DM is capable of synergizing these differences with the use of practices to fuse a network of varied employees to create a dynamic workforce.

Presence of a diverse group of individuals at work allows openness to change. It accepts better creativity which is the result of varying capabilities and expertise of a diverse workforce. Greater diversity yields in greater productivity, customer satisfaction, employee engagement, retention and puts organizations at a competitive advantage.

Organizations need a diverse pool of human talent so that weaknesses of one individual can be compensated for their unique strengths. Hence organizational talent acquisition strategies need to be designed in such a way that it attracts diverse candidates. Diversity can be further enhanced through acquiring talent from recruitment of minorities, women and differently-abled people as well as elderly or retired people whom can be recruited on contractual basis. Workplace policies and ethics need to be more appealing to such diverse individuals so as to bring out the best in them and for them to feel comfortable rather than frowned upon.

Challenges

The main diversity challenge at the selection stage is the elimination of the discriminatory factors that may affect the selection process: these factors are related to conscious and unconscious stereotypes held by those evaluating the candidates. (Pannacio & Waxin, 2010). Hence stereotypes, prejudice, discrimination, tension and biases need to be avoided at every managerial decision. 

Understanding and managing diversity is crucial for organizations, given the current changes in the cultural and ethnic attributes of the workforce (Ismail, Murthi & Richard, 2007). The biggest challenge is to manage conflicting perspectives and personalities. However such perspectives can even be a constructive debate over a particular organizational issue which then should be encouraged as better solutions can be obtained through their diversity in experience, skills and knowledge. Interpersonal conflict should be avoided at all times and need the intervention of precise communication channels to resolve and reach common understanding. These should be addressed thoroughly so as to not interfere with workplace morale and performance. Hence effective policies and practices need to be in place that enables reduction of industrial disputes that hinder productivity. Diversity can give rise to communication and comprehension problems leading to high staff turnover and lower job satisfaction.

 

References

Ismail, K., Murthi, B., & Richard, O.C. (2007). The impact of racial diversity on intermediate and long-term performance: The moderating role of environmental context. Strategic Management Journal, 28, 1213-1233. 

Mbaknol.com. (2021). Diversity Management in HRM - Managing Diversity in the Workplace. [online] Available at: <https://www.mbaknol.com/human-resource-management/diversity-management/> [Accessed 28 March 2021]. 

Pannacio, A., & Waxin, M., (2010). Facilitating the Diversity through the Recruitment, selection, & Integration of Diverse Employees in Quebec Bank. Journal of the International Academy of Case Studies, 16(4), p.35.

 

Role of Strategic Human Resource Management in Organizations

 

 

Organizations are more likely to sustain and excel in the corporate world only when their goals and objectives are well aligned with overall decisions taken by every department. People are a great asset to any organization and this is why Human Resource Management (HRM) plays a key role in business decision making. Not only capital but also right people on the right job decides whether a company will perish or sustain and win in the long run. This is where Strategic Human Resource Management (SHRM) comes in to action to manage people and drive organizations towards their pinnacle. Thus SHRM can be defined as “the connection between a company’s’ human resources and its strategies, objectives and goals” (Sawyer, 2019).

 For SHRM to be a successful indicator of organizational success, HR act as an essential element and a strategic partner when organizational policies and procedures are created and executed. According to Keller and Meaney (2017), “talent matters, because its’ high vale and scarce and is difficult to replace, it creates a huge opportunity when companies get things right”. SHRM is helpful in many facets of organizational HR procedures initiating from recruitment, selection, hiring, training and development, performance appraisal, rewarding and compensation, promotion and towards the exit of an employee from an organization.

Implementation of SHRM requires a carefully examined and formulated strategic HR planning process that goes through a series of seven progressive steps as follows.

Table 1: Steps of Strategic HR Planning Process (Theintactone.com, 2019).

Benefits of SHRM

 It is an innovative approach to management that allows flexibility. It creates a good fit between the purpose of an organization with its unique culture inherited through years in the corporate world. It is a proactive approach to managing people that ensures increased job satisfaction and work morale. Employees that are happy will ultimately create improved customer satisfaction. This boosts productivity and positively impact on the work ethics. Good SHRM practices are the key to efficient resource management. It assures that capital of an organization is spent for the right purpose of achieving long term business goals. These benefits finally result in improved business performance creating a competitive edge over competitors and garner attraction in the marketplace. 

In conclusion SHRM drives successful organizational performance through recruiting, developing and retaining the best pool of talent in the marketplace. Such organizations are bound to harness an organizational culture that is both progressive and conducive in light of changing marketplace needs and unforeseeable changes. Hence they are farfetched and are guaranteed to achieve its organizational vision amidst of high competitions.

 

References

Keller, S., Meaney, M. (2017). Attracting and Retaining the Right Talent. [online]. McKinsey & Company. Available at: https://www.mckinsey.com/business-functions/organization/our-insights/attracting=and-retaining-the-right-talent# [Accessed 25 March 2021]. 

Sawyer, K., 2019. 7 Key Steps: Strategic Human Resource Management - Deputy. [online] Deputy. Available at: https://www.deputy.com/blog/7-steps-to-strategic-human-resource-management> [Accessed 25 March 2021].

Theintactons. (2019). Strategic HRM, Steps of Strategic HRM. [online] Available at https://theintactone.com/2019/02/18/hrm-u1-topic-8-strategic-hrm-steps-of-strategic-hrm [Accessed 25 March 2021].